Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year.A. On July 3, the company purchases 30 fountains for $1,700 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3.B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 10% annual interest rate, payable in two months from August 3.C. On October 3, Serene Company pays its account in full.Record the journal entries to recognize the initial purchase, the conversion, and the payment. If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar.July 3 fill in the blank 2fill in the blank 3 fill in the blank 5fill in the blank 6Aug. 3 fill in the blank 8fill in the blank 9 fill in the blank 11fill in the blank 12Oct. 3 fill in the blank 14fill in the blank 15 fill in the blank 17fill in the blank 18 fill in the blank 20fill in the blank 21 Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions takeplace during the current year.A. On July 3, the company purchases 30 fountains for $1,700 per fountain, on credit. Terms of thepurchase are 2/10, n/30, invoice dated July 3.B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees toconvert the debt owed into a short-term note, with an 10% annual interest rate, payable in two monthsfrom August 3.C. On October 3, Serene Company pays its account in full.Record the journal entries to recognize the initial purchase, the conversion, and the payment. If anamount box does not require an entry, leave it blank. When required, round your answers to thenearest dollar.July 3Aug. 3Oct. 3

Notes are instrument issued by company acknowledging the debt raised by company . It is a liability…

Answered: Serene Company purchases fountains for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year.

A. On July 3, the company purchases 30 fountains for $1,700 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3.

B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 10% annual interest rate, payable in two months from August 3.

C. On October 3, Serene Company pays its account in full.

Record the journal entries to recognize the initial purchase, the conversion, and the payment. If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar.

July 3	fill in the blank 2	fill in the blank 3
	fill in the blank 5	fill in the blank 6
Aug. 3	fill in the blank 8	fill in the blank 9
	fill in the blank 11	fill in the blank 12
Oct. 3	fill in the blank 14	fill in the blank 15
	fill in the blank 17	fill in the blank 18
	fill in the blank 20	fill in the blank 21

Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take
place during the current year.
A. On July 3, the company purchases 30 fountains for $1,700 per fountain, on credit. Terms of the
purchase are 2/10, n/30, invoice dated July 3.
B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to
convert the debt owed into a short-term note, with an 10% annual interest rate, payable in two months
from August 3.
C. On October 3, Serene Company pays its account in full.
Record the journal entries to recognize the initial purchase, the conversion, and the payment. If an
amount box does not require an entry, leave it blank. When required, round your answers to the
nearest dollar.
July 3
Aug. 3
Oct. 3

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